Clean Energy Blog, Xnergy Blog
July 2025 TNB Tariff Update: What Malaysian Businesses Need to Know
23 Sep 2025Key Takeway
Starting 1 July 2025, Tenaga Nasional Berhad (TNB) has implemented new electricity tariff adjustments affecting Commercial and Industrial (C&I) users across Malaysia. These changes reflect the government’s ongoing Imbalance Cost Pass-Through (ICPT) mechanism and efforts to balance rising global energy costs with the nation’s renewable energy transition.
Key Highlights of 1 July 2025 Tariff Adjustment
1. Energy Charge Adjustment: The base energy rate for C&I users is revised in between -18% to 100%.
Non-Domestic – Commercial Sector
| Tariff | OLD Energy Charges | NEW Energy Charges |
|---|---|---|
| Low Voltage General Tariff (also known as Tariff B) |
First 200kWh: RM 0.435/kWh 201kWh onwards: RM 0.509/kWh |
RM 0.2703/kWh |
| Medium Voltage General Tariff (also known as Tariff C1) |
RM 0.365/kWh | RM 0.2983/kWh (-18.27%) |
| Medium Voltage TOU Tariff (also known as Tariff C2) |
Peak Period: RM 0.365/kWh Off-Pead Period: RM 0.224/kWh |
Peak Period: RM 0.3132/kWh (-14.19%) Off-Pead Period: RM 0.2723/kWh (+21.56%) |
| High Voltage General Tariff (also known as Tariff C3) |
RM 0.345/kWh | RM 0.4303/kWh (+24.72%) |
| High Voltage TOU Tariff (also known as Tariff C4) |
Peak Period: RM 0.345/kWh Off-Pead Period: RM 0.207/kWh |
Peak Period: RM 0.4452/kWh (+29.04%) Off-Pead Period: RM 0.4043/kWh (+95.31%) |
Non-Domestic – Industrial Sector
| Tariff | Energy Charges (OLD) | Energy Charges (NEW) |
|---|---|---|
| Low Voltage General Tariff (also known as Tariff D) |
First 200kWh: RM 0.380/kWh 201kWh onwards: RM 0.441/kWh |
RM 0.2703/kWh |
| Medium Voltage General Tariff (also known as Tariff E1) |
RM 0.337/kWh | RM 0.2983/kWh (-11.48%) |
| Medium Voltage TOU Tariff (also known as Tariff E2) |
Peak Period: RM 0.355/kWh Off-Pead Period: RM 0.219/kWh |
Peak Period: RM 0.3132/kWh (-11.77%) Off-Pead Period: RM 0.2723/kWh (+24.34%) |
| High Voltage General Tariff (also known as Tariff E3) |
Peak Period: RM 0.355/kWh Off-Pead Period: RM 0.219/kWh |
Peak Period: RM 0.3132/kWh (+32.11%) Off-Pead Period: RM 0.2723/kWh (+100.15% |
2. Maximum Demand (MD) charge applies, based on the highest 30-minute demand (kW/kVA) recorded each billing cycle and it increases your monthly TNB bill. Under the new TNB tariff structure, the previous Maximum Demand (MD) charge has been replaced by a combination of Capacity and Network Charges, providing a more detailed reflection of each customer’s actual grid usage.
Starting from 1 July, this will apply for all users included Non-Domestic Low Voltage General Tariff (Tariff B & D) users.
| Tariff | Maximum Demand Charge (OLD) | Network and Capacity Charges (NEW) |
|---|---|---|
| Low Voltage General Tariff (also known as Tariff B & D) |
N/A | TOTAL: RM 0.2365/kWh - Capacity Charge: RM 0.0883/kWh - Network Charge: RM 0.1482/kWh |
| Medium Voltage (also known as Tariff C1 & E1) |
Tariff C1: RM 30.3/kW Tariff E1: RM 29.6/kW |
TOTAL: RM 89.27/kWh Tariff C1 (+194.62%) | Tariff E1 (+201.59%) - Capacity Charge: RM 29.43/kWh - Network Charge: RM 59.84/kWh |
| Medium Voltage TOU Tariff (also known as Tariff C2 & E2) |
Tariff C2: RM 45.1/kW Tariff E2: RM 37/kW |
TOTAL: RM 97.06/kWh Tariff C2 (+115.21%) | Tariff E2 (+162.32%) - Capacity Charge: RM 30.19/kWh - Network Charge: RM 66.87/kWh |
| High Voltage General Tariff (also known as Tariff C3) |
Tariff C3: RM 29.2/kW | TOTAL: RM 31.21/kWh (+6.88%) - Capacity Charge: RM 16.68/kWh - Network Charge: RM 14.53/kWh |
| High Voltage TOU Tariff (also known as Tariff C4 & E3) |
Tariff C4: RM 43.6/kW Tariff E3: RM 35.5/kW |
TOTAL: RM 44.82/kWh Tariff C4 (+2.8%) | Tariff E3 (+26.25%) - Capacity Charge: RM 21.76/kWh - Network Charge: RM 23.06/kWh |
3. Automatic Fuel Cost Adjustment (AFA): Replaces Imbalance Cost Pass-Through (ICPT) Surcharge/ Rebate. AFA rate will be reflected on a monthly basis in your electricity bill if there is any fluctuation in the market fuel prices and foreign exchange rates. The declaration of the AFA rate (in sen/kWh) shall be based on confirmation by the Energy Commission (ST) or as officially communicated through a Ministerial decision.
4. Time-of-Use (TOU) Period Revision: Peak and off-peak hours have been redefined, widening the gap between high-cost and low-cost periods. The manufacture who run heavy machinery or HVAC systems during the new peak window will cost more, while shifting loads to the longer off-peak period can deliver greater savings.
ToU scheme has 2 time zones (Peak and Off-Peak):
- Monday to Friday
Peak: 2 PM to 10 PM
Off-Peak: 10 PM to 2 PM
- Saturday, Sunday and Public Holidays*
Off-Peak throughout the day (24 hours)
Strategies to Lower and Stabilise Costs
- Peak Shaving from Solar & Battery Energy Storage Systems (BESS) Integration
Business owners can leverage on solar system to generate energy on daytime, store the excess energy in BESS system, and draw from it in the evening or during peak period. It helps to reduce both network and capacity charges and exposure to AFA price swings.
- AI system Integration
The business owners can develop a Smart Load Scheduling System were capturing the real-time monitoring data from the factory machineries. They can shift non-critical operations (e.g., heavy machinery, chillers) to off-peak periods and flatten the demand curve, where our clients are using this way to reduce their company OPEX.
Protect Your Bottom Line
The TNB tariff revision signals a decisive shift toward cost-reflective energy pricing. Businesses that monitor, manage, and store energy will stay competitive from their competitors.
Contact us to explore how BESS-driven peak-shaving and solar strategies can reduce energy charges, buffer against monthly AFA fluctuations, and future-proof your operations.
Info Sources:
- Tenaga National Berhad (TNB) - Automatic Fuel Cost Adjustment (AFA)
- Tenaga National Berhad (TNB) - Time-of-Use (ToU) Period
- Plus Xnergy - Battery Energy Storage Systems: A Comprehensive Guide for Businesses to Understand and Leverage BESS in Malaysia
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